DEPARTMENT OF THE NAVY FY 2017 BUDGET ESTIMATES BUDGET DATA BOOK OFFICE OF BUDGET

DEPARTMENT OF THE NAVY FY 2017 BUDGET ESTIMATES BUDGET DATA BOOK OFFICE OF BUDGET April 2016

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INTRODUCTION This document is a compendium of selected budget data and related information for use by Department of the Navy (DON) management and staff. This budget reference document is based on documentation supporting the President's Budget request as submitted to the Congress in February 2016 and contains dollar and manpower budget estimates, program and force data, pricing and economic factors, displays of selected funding categories, current and constant dollar data, real program growth estimates, price deflator information, and other data supporting the FY 2017 Budget Estimates.

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Table of Contents A B C D Table of Contents Where to find answers to most common questions about DON budget data Definitions Appropriation and Fund Title Acronyms SECTION 1 - DEPARTMENT OF DEFENSE (DOD) SUMMARY DATA 1.1 Summary 1.2 TOA, Budget Authority, and Outlay Trends 1.3 TOA, Budget Authority, and Outlays by Military Department 1.4 Direct Budget Plan (TOA) by Military Department and Appropriation Title 1.5 Direct Budget Plan (TOA) by Appropriation Title and Military Department SECTION 2 - DEPARTMENT OF THE NAVY (DON) SUMMARY DATA 2.1 Summary 2.2 TOA, Budget Authority, and Outlay Trends Direct Plan (TOA), Budget Authority and Outlays by Major Title and Appropriation 2.3 2.4 Composition of the Direct Budget Plan (TOA), FY 2015 to FY 2017 2.5 Comparison of TOA by Appropriation, FY 2015 to FY 2017 SECTION 3 - ECONOMIC FACTORS 3.1 Summary 3.2 Pay and Inflation Rate Assumptions 3.3 Military and Civilian Pay Increases since 1945 3.4 DON Deflators (Outlays) by Appropriation 3.5 DON Deflators (TOA) by Appropriation A.1

Table of Contents SECTION 4 - CURRENT AND CONSTANT DOLLARS 4.1 Summary 4.2 Annual Real Program Change 4.3 Real Program Change by Appropriation 4.4 DON TOA Real Program Trends 4.5 Direct Budget Plan (TOA) History (Current Dollars) 4.6 Direct Budget Plan (TOA) History (Constant Dollars) SECTION 5 - OBLIGATION AND OUTLAY DATA 5.1 Summary 5.2 DON Program Obligation Rates 5.3 Unobligated Balances, New Obligational Resources, and Obligations - FY 2015 5.4 Unobligated Balances, New Obligational Resources, and Obligations - FY 2016 5.5 Unobligated Balances, New Obligational Resources, and Obligations - FY 2017 5.6 Direct Obligation History by Object Class 5.7 DON Program Outlay Rates 5.8 Unexpended Balances, New Expendable Resources, and Outlays - FY 2015 5.9 Unexpended Balances, New Expendable Resources, and Outlays - FY 2016 5.10 Unexpended Balances, New Expendable Resources, and Outlays - FY 2017 SECTION 6 - SELECTED DON PROGRAM AND SPECIAL INTEREST DATA 6.1 Summary 6.2 Selected Force and Program Factors 6.3 Historical Personnel Summary 6.4 Shipbuilding and Conversion Procurement History 6.5 Aircraft Force History 6.6 Aircraft Procurement History 6.7 Selected Civilian Personnel Special Interest Areas 6.8 Support of Reserve Forces 6.9 TOA by FYDP Major Force Program A.2

WHERE TO FIND THE ANSWERS TO THE MOST COMMON QUESTIONS ABOUT DON BUDGET DATA 1. How do you adjust (escalate/de-escalate) funding so that you can compare two years without the effects of inflation? SEE THE INTRODUCTION TO SECTION 3 - ECONOMIC FACTORS. 2. What's a current dollar? What's a constant dollar? What's a then year dollar? SEE DEFINITIONS AND ACRONYMS, listed below. 3. What is the Department of the Navy's share of total Department of Defense Total Obligational Authority? SEE SECTION 1 - DEPARTMENT OF DEFENSE (DOD) SUMMARY DATA. 4. What was the Department of the Navy's real program change in various years? SEE SECTION 4 - CURRENT AND CONSTANT DOLLARS. 5. How much funding does (or did) the Army or Air Force have in a given year? SEE SECTION 1 - DEPARTMENT OF DEFENSE (DOD) SUMMARY DATA. 6. How many ships or aircraft were funded for production in prior years? SEE SECTION 6 - SELECTED DON PROGRAM AND SPECIAL INTEREST DATA. 7. How quickly will these funds outlay? SEE SECTION 5 - OBLIGATION AND OUTLAY DATA. 8. How much was the pay raise in prior years? SEE SECTION 3 - ECONOMIC FACTORS. 9. What accounts for the difference between the amount Congressionally enacted in an appropriation and the current amount of Budget Authority, or current Budget Authority and current Total Obligational Authority? SEE SECTION 2 - DEPARTMENT OF THE NAVY (DON) SUMMARY DATA. B.1

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Definitions Appropriation Appropriation Title Budget Authority Budget Year(s) Constant Dollars Current Year Current Dollars Deflators Direct Budget Plan Inflation Indices The Legislative Act which permits the government to make obligations. A grouping of like appropriations and funds into the following categories: Military Personnel, Operation and Maintenance, Procurement, Research and Development, Military Construction, Family Housing, and Trust, Revolving, and Management Funds. The value of annual new legal authority to incur obligations (to enter into contracts involving expenditures of funds from the Treasury). BA. Fiscal year(s) for which a request or estimate is made as the central focus of the budget documents. Funds from which the effects of inflation have been removed so that it is possible to compare funding between fiscal years. The fiscal year which will be in execution when the budget goes to Congress (FY 2016 for the FY 2017 Budget Estimates). Funds which include the impact of inflation. These are the amounts most often shown in the budget. Same as then year dollars. Numbers which may be used to eliminate the impact of inflation in any given fiscal year so that funding in that year can be compared to the funding in any other year. Value of the direct program for a fiscal year regardless of the method of financing (which could include balances available from prior years). Same as TOA. Refers to program which are directly (instead of reimbursably) funded. The inflation rate from one year to the next. In order to compare two years, it will usually be desirable to eliminate the effects of inflation. This process is usually best accomplished by using a deflator rather than the inflation indices. C.1

Definitions Net Expenditures Same as Outlays. Obligational Authority The period during which funds are available for new obligations. Outlays Prior Year Total Obligational Authority (TOA) Checks issued or cash disbursed. Outlays include interest accrued on the public debt, or other forms of payment, net of refunds and reimbursements. Also known as net expenditures or net disbursements. The fiscal year which will have been most recently completed when the budget goes to Congress (FY 2015 for the FY 2017 Budget Estimates). The DoD term which expresses the value of the direct program for a fiscal year regardless of the method of financing (i.e., could include balances available from prior years). C.2

Appropriation and Fund Title Acronyms MPN MPMC RPN RPMC DHAN DHAMC DHANR DHAMCR OMN OMMC OMNR OMMCR OMN, RA OMMC, RA OMNR, RA OMMCR, RA ERN KAHO IS CONV KAHO SMOSF APN WPN SCN PANMC OPN PMC CDAN RDTEN RDTEN, RA MCN MCNR BRAC FHCON Military Personnel, Navy Military Personnel, Marine Corps Reserve Personnel, Navy Reserve Personnel, Marine Corps Medicare-Eligible, Navy Medicare-Eligible, Marine Corps Medicare-Eligible, Navy Reserve Medicare-Eligible, Marine Corps Reserve Operation & Maintenance, Navy Operation & Maintenance, Marine Corps Operation & Maintenance, Navy Reserve Operation & Maintenance, Marine Corps Reserve Operation & Maintenance, Navy, Recovery Act Operation & Maintenance, Marine Corps, Recovery Act Operation & Maintenance, Navy Reserve, Recovery Act Operation & Maintenance, Marine Corps Reserve, Recovery Act Environmental Restoration, Navy Kaho'olawe Island Conveyance, Remediation, and Environmental Restoration Fund Payment to Kaho'olawe Island Fund Ship Modernization, Operations and Sustainment Fund Aircraft Procurement, Navy Weapons Procurement, Navy Shipbuilding and Conversion, Navy Procurement of Ammunition, Navy/Marine Corps Other Procurement, Navy Procurement, Marine Corps Coastal Defense Augmentation, Navy Research, Development, Test, & Evaluation, Navy Research, Development, Test, & Evaluation, Navy, Recovery Act Military Construction, Navy (& Marine Corps) Military Construction, Naval Reserve Base Realignment & Closure Family Housing, Navy and Marine Corps (Construction) D.1

Appropriation and Fund Title Acronyms FHOPS ROSSM NWCF NDSF USNAGMF NGGF SSPN PSSSN Family Housing, Navy and Marine Corps (Operations) Roosmoor Liquidating Trust Settlement Account Navy Working Capital Fund National Defense Sealift Fund United States Naval Academy Gift and Museum Fund Navy General Gift Fund Ships' Stores Profits, Navy Profits Sales of Ships Stores, Navy D.2

SECTION 1 - DEPARTMENT OF DEFENSE (DOD) SUMMARY DATA This section contains a summary of Department of Defense budget estimates in terms of total obligational authority (TOA), budget authority (BA), and outlays. Trends for TOA, BA, and outlays are included. Funding allocated by military department and major appropriation title is displayed. This section places the DON estimates in context with total DoD and other military department estimates. 1.1

$ in Billions of Constant FY 2017 Dollars DOD FY 2017 Budget Estimates TOA, Budget Authority, and Outlay Trends 800 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 0 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Fiscal Year TOA BA OUTLAYS NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 1.2

FY 2017 Budget Estimates Direct Budget Plan (TOA), Budget Authority, and Outlays by Military Department (Constant FY 2017 Dollars in Millions) FY 2015 Total Department of the Department of the Department of the DoD Navy Army Air Force Other DoD Budget Amount Percent Amount Percent Amount Percent Amount Percent Budget Plan (TOA) $582,411 164,857 28.3% 155,322 26.7% 157,697 27.1% 104,535 17.9% Budget Authority 587,980 165,435 28.1% 152,350 25.9% 157,284 26.7% 112,911 19.2% Outlays 577,671 163,358 28.3% 159,578 27.6% 150,677 26.1% 104,058 18.0% FY 2016 Budget Plan (TOA) 594,577 171,998 28.9% 149,924 25.2% 165,572 27.8% 107,082 18.0% Budget Authority 596,991 171,253 28.7% 149,313 25.0% 164,195 27.5% 112,230 18.8% Outlays 585,814 164,428 28.1% 156,438 26.7% 153,338 26.2% 111,610 19.1% FY 2017 Budget Plan (TOA) 524,599 155,385 29.6% 122,998 23.4% 151,053 28.8% 95,163 18.1% Budget Authority 531,721 155,316 29.2% 123,073 23.1% 151,039 28.4% 102,293 19.2% Outlays 553,029 154,795 28.0% 140,978 25.5% 150,591 27.2% 106,666 19.3% NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 1.3

FY 2017 Budget Estimates Direct Budget Plan (TOA) by Military Department and Appropriation Title (Constant FY 2017 Dollars in Millions) FY 2015 FY 2016 FY 2017 Department of the Navy 164,857 171,998 155,385 Military Personnel 46,922 46,440 45,556 Operation and Maintenance 55,027 55,181 46,918 Procurement 44,007 49,117 44,039 Research and Development 16,586 18,455 17,276 Military Construction 1,416 1,947 1,201 Family Housing 373 376 395 Revolving Funds 526 483 0 Trust, Receipts, and Other 0 0 0 Department of the Army 155,322 149,924 122,998 Military Personnel 60,950 59,109 55,225 Operation and Maintenance 67,759 61,369 43,517 Procurement 17,430 19,887 15,338 Research and Development 6,959 7,692 7,515 Military Construction 1,533 1,175 819 Family Housing 431 493 527 Revolving Funds 259 199 56 Trust, Receipts, and Other 0 0 0 Department of the Air Force 157,697 165,572 151,053 Military Personnel 35,144 35,182 34,488 Operation and Maintenance 56,309 55,921 47,661 Procurement 40,116 46,510 38,521 Research and Development 24,398 25,664 28,112 Military Construction 1,331 1,728 1,870 Family Housing 328 500 336 Revolving Funds 71 67 64 Trust, Receipts, and Other 0 0 0 Defense Wide 104,535 107,082 95,163 Military Personnel 0 0 0 Operation and Maintenance 75,922 76,913 68,443 Procurement 6,264 6,618 4,669 Research and Development 18,255 19,391 18,489 Military Construction 2,398 2,423 2,234 Family Housing 185 141 78 Revolving Funds 1,482 1,595 1,252 Trust, Receipts, and Other 29 0 0 TOTAL, DEPARTMENT OF DEFENSE TOA 582,411 594,577 524,599 NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 1.4

FY 2017 Budget Estimates Direct Budget Plan (TOA) by Appropriation Title and Military Department (Constant FY 2017 Dollars in Millions) FY 2015 FY 2016 FY 2017 Military Personnel DoD Total 143,016 140,732 135,269 Department of the Navy 46,922 46,440 45,556 Department of the Army 60,950 59,109 55,225 Department of the Air Force 35,144 35,182 34,488 Defense Wide 0 0 0 Operation and Maintenance DoD Total 255,017 249,384 206,539 Department of the Navy 55,027 55,181 46,918 Department of the Army 67,759 61,369 43,517 Department of the Air Force 56,309 55,921 47,661 Defense Wide 75,922 76,913 68,443 Procurement DoD Total 107,817 122,132 102,567 Department of the Navy 44,007 49,117 44,039 Department of the Army 17,430 19,887 15,338 Department of the Air Force 40,116 46,510 38,521 Defense Wide 6,264 6,618 4,669 Research and Development DoD Total 66,198 71,202 71,392 Department of the Navy 16,586 18,455 17,276 Department of the Army 6,959 7,692 7,515 Department of the Air Force 24,398 25,664 28,112 Defense Wide 18,255 19,391 18,489 Military Construction DoD Total 6,678 7,273 6,124 Department of the Navy 1,416 1,947 1,201 Department of the Army 1,533 1,175 819 Department of the Air Force 1,331 1,728 1,870 Defense Wide 2,398 2,423 2,234 Family Housing DoD Total 1,317 1,510 1,336 Department of the Navy 373 376 395 Department of the Army 431 493 527 Department of the Air Force 328 500 336 Defense Wide 185 141 78 Revolving Funds DoD Total 2,338 2,344 1,372 Department of the Navy 526 483 0 Department of the Army 259 199 56 Department of the Air Force 71 67 64 Defense Wide 1,482 1,595 1,252 Trust, Receipts, and Other DoD Total 29 0 0 Trust, Receipts, and Other 29 0 0 TOTAL, DEPARTMENT OF DEFENSE TOA 582,411 594,577 524,599 NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 1.5

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SECTION 2 - DEPARTMENT OF THE NAVY (DON) SUMMARY DATA This section contains FY 2015 through FY 2017 Department of the Navy estimates for TOA, BA and Outlays. TOA, BA, and outlays are displayed in terms of trends, appropriation title/appropriation and TOA composition and fiscal year comparisons are also provided. Information concerning programs subject to authorization is displayed. Most National Defense activities require annual authorization before the Congress may appropriate funds. The largest amount in the request not requiring annual authorization is military pay; military end strength, rather than military pay, is authorized. 2.1

200 $ in Billions of Constant FY 2017 Dollars DON FY 2017 Budget Estimates TOA, Budget Authority, Outlay Trends 180 160 140 120 100 80 60 40 20 0 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Fiscal Year NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. TOA BA OUTLAYS 2.2

Department of the Navy FY 2017 Budget Estimates Direct Budget Plan (TOA), Budget Authority, and Outlays by Major Title and Appropriation (Constant FY 2017 Dollars in Millions) Total Obligational Authority Budget Authority Outlays --------------------- -------------------- -------------------- --------------------- ------------------------ --------------------- --------------------- --------------------- --------------------- FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 FY 2015 FY 2016 FY 2017 --------------------- -------------------- -------------------- --------------------- ------------------------ --------------------- --------------------- --------------------- --------------------- Military Personnel MPN 28,465 28,366 27,952 28,553 28,366 27,952 28,724 28,472 27,846 MPMC 13,399 13,177 12,813 13,513 13,177 12,813 13,353 13,108 13,123 RPN 1,938 1,907 1,924 1,941 1,907 1,924 1,903 1,909 1,911 RPMC 713 716 745 719 716 745 706 720 739 DHAN 1,390 1,330 1,241 1,390 1,330 1,241 1,390 1,330 1,241 DHAMC 807 754 703 807 754 703 807 754 703 DHANR 132 120 112 132 120 112 132 120 112 DHAMCR 78 70 65 78 70 65 78 70 65 Total 46,922 46,440 45,556 47,133 46,440 45,556 47,093 46,483 45,741 Operation & Maintenance OMN 45,711 46,457 39,484 45,751 46,466 39,490 45,391 47,734 41,110 OMMC 7,663 7,144 5,954 7,690 7,145 5,955 8,339 7,519 6,275 OMNR 1,055 993 928 1,059 993 928 1,069 1,047 938 OMMCR 293 282 271 293 282 271 273 308 276 ERN 0 306 282 0 306 282 0 121 233 SMOSF 304 0 0 304 0 0 0 0 0 Total 55,027 55,181 46,918 55,098 55,191 46,926 55,072 56,729 48,832 Procurement APN 15,549 18,272 14,109 15,297 18,004 14,109 16,137 15,690 15,964 WPN 3,359 3,108 3,209 3,253 3,095 3,212 3,239 3,032 3,022 SCN 16,606 19,067 18,355 16,574 19,067 18,355 14,129 14,897 14,843 PANMC 860 785 664 860 776 664 905 1,017 699 OPN 6,637 6,618 6,339 6,428 6,635 6,360 5,804 5,941 6,124 PMC 994 1,267 1,363 952 1,200 1,364 1,629 1,551 1,022 CDAN 0 0 0 0 0 0 0 20 16 Total 44,007 49,117 44,039 43,364 48,776 44,065 41,843 42,150 41,691 Research & Development RDTEN 16,586 18,455 17,276 16,382 18,333 17,458 16,626 16,836 17,184 Military Construction MCN 1,126 1,737 1,028 1,095 1,737 1,028 1,732 1,456 1,483 MCNR 58 37 39 58 37 39 16 66 41 FHCON 17 17 94 17 17 94 54 67 49 FHOPS 356 359 301 366 359 301 314 305 321 BRAC IV 6 0 0 0 0 0 87 12 8 BRAC V 3 0 0 0 0 0 23 7 0 BRAC Consolidated 224 173 134 144 173 134 66 120 98 Total 1,789 2,323 1,596 1,680 2,323 1,596 2,292 2,035 1,999 Revolving & Management Funds NWCF 0 0 0 1,446 0 0-126 47-590 NDSF 526 483 0 502 483 0 728 441 221 Total 526 483 0 1,948 483 0 602 488-369 Offsetting Receipts Recoveries FMS Program, Navy 0 0 0-21 -158-156 -21-158 -156 General Fund Prop Recoveries, Navy 0 0 0-135 -84-83 -135-84 -83 Intergovernmental Adjustments, Navy 0 0 0-25 -46-45 -25-46 -45 Total 0 0 0-181 -288-283 -181-288 -283 Trust Funds USNA Gift Fund 0 0 0 11 5 9 8 5 9 Navy Gift Fund 0 0 0 1 1 1 4 1 1 Ships Stores Profit 0 0 0 12 10 9 12 10 9 Total 0 0 0 24 16 20 24 16 20 Interfund Transactions Profits from Sales of Ships Stores 0 0 0-12 -20-20 -12-20 -20 Total 0 0 0-12 -20-20 -12-20 -20 Total, DON 164,857 171,998 155,385 165,435 171,253 155,316 163,358 164,428 154,795 NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 2.3

Department of the Navy FY 2017 Budget Estimates Comparison of TOA, FY 2015-2017 0.8% 0.3% 0.0% FY 2017 Estimate 28.3% 11.1% 29.3% 30.2% Milpers O&M 10.7% 1.1% 0.2% 0.3% Procurement 27.0% FY 2016 Estimate 28.6% 32.1% RDT&E Milcon/BRAC 10.1% 0.9% 0.2% 0.3% Family Housing FY 2015 Actuals 26.7% 28.5% 33.4% Revolving/Mgt Funds NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 2.4

Department of the Navy FY 2017 Budget Estimates Comparison of TOA by Appropriation - FY 2015 to FY 2017 (In Thousands of Dollars - Current Dollars) FY 2015 $ Change % Change FY 2016 $ Change % Change FY 2017 Military Personnel MPN 27,711,816 243,235 0.9% 27,955,051 (3,446) 0.0% 27,951,605 MPMC 13,047,388 (58,788) -0.5% 12,988,600 (175,188) -1.3% 12,813,412 RPN 1,886,227 (6,643) -0.4% 1,879,584 44,571 2.4% 1,924,155 RPMC 694,620 11,254 1.6% 705,874 39,121 5.5% 744,995 DHAN 1,312,671 (31,203) -2.4% 1,281,468 (40,486) -3.2% 1,240,982 DHAMC 762,093 (35,897) -4.7% 726,196 (23,025) -3.2% 703,171 DHANR 124,898 (9,379) -7.5% 115,519 (3,273) -2.8% 112,246 DHAMCR 73,966 (6,169) -8.3% 67,797 (2,855) -4.2% 64,942 Total 45,613,679 106,410 0.2% 45,720,089 (164,581) -0.4% 45,555,508 Operation & Maintenance OMN 45,068,219 883,480 2.0% 45,951,699 (6,468,118) -14.1% 39,483,581 OMMC 7,467,360 (428,939) -5.7% 7,038,421 (1,084,163) -15.4% 5,954,258 OMNR 1,057,647 (69,424) -6.6% 988,223 (60,567) -6.1% 927,656 OMMCR 284,287 (7,335) -2.6% 276,952 (6,319) -2.3% 270,633 ERN 0 300,000 N/A 300,000 (18,238) -6.1% 281,762 SMOSF 294,400 (294,400) -100.0% 0 0 N/A 0 Total 54,171,912 383,383 0.7% 54,555,295 (7,637,405) -14.0% 46,917,890 Procurement APN 14,997,923 2,932,276 19.6% 17,930,199 (3,821,051) -21.3% 14,109,148 WPN 3,240,000 (190,458) -5.9% 3,049,542 159,720 5.2% 3,209,262 SCN 15,994,987 2,709,552 16.9% 18,704,539 (349,665) -1.9% 18,354,874 PANMC 828,990 (59,104) -7.1% 769,886 (105,518) -13.7% 664,368 OPN 6,405,148 91,295 1.4% 6,496,443 (157,582) -2.4% 6,338,861 PMC 958,590 285,156 29.7% 1,243,746 119,023 9.6% 1,362,769 Total 42,425,638 5,768,717 13.6% 48,194,355 (4,155,073) -8.6% 44,039,282 Research & Development RDTEN 16,067,423 2,079,571 12.9% 18,146,994 (870,693) -4.8% 17,276,301 Military Construction MCN 1,083,986 619,753 57.2% 1,703,739 (675,976) -39.7% 1,027,763 MCNR 55,504 (19,426) -35.0% 36,078 2,519 7.0% 38,597 FHCON 16,412 129 0.8% 16,541 77,470 468.4% 94,011 FHOPS 344,680 8,356 2.4% 353,036 (52,121) -14.8% 300,915 BRAC IV 6,211 (6,211) -100.0% 0 0 N/A 0 BRAC V 2,655 (2,655) -100.0% 0 0 N/A 0 BRAC Consolidated 215,982 (46,278) -21.4% 169,704 (35,331) -20.8% 134,373 Total 1,725,431 553,667 32.1% 2,279,098 (683,439) -30.0% 1,595,659 Revolving & Management Funds NDSF 507,921 (33,757) -6.6% 474,164 (474,164) -100.0% 0 Total 507,921 (33,757) -6.6% 474,164 (474,164) -100.0% 0 Total, DON 160,512,004 8,857,991 5.5% 169,369,995 (13,985,355) -8.3% 155,384,640 NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 2.5

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SECTION 3 - ECONOMIC FACTORS This section contains Department of Defense pay and inflation rate experience and assumptions for FY 2015 through FY 2021. A table reflecting military and civilian pay raises since 1945 is included. DON outlay deflators, by category, for FY 1970 through FY 2021 and DON TOA deflators, by appropriation, for FY 1970 through FY 2021 are provided. Explanation of the use of deflators (inflation and deflation of dollar amounts): - To convert dollars from any year to FY 2017 dollars: Find the deflator for the year from which you are converting the dollars. Then divide that amount by that number. The result is the dollar amount in FY 2017 dollars. - To convert FY 2017 dollars to any other year: Find the deflator for the year to which you are converting the dollars. Then multiply that year's dollar amount by the deflator. The result is the dollar amount in the new year's dollars. - To convert from any year to any year: First convert the dollars to FY 2017 dollars, as described above. Then convert these FY 2017 dollars to the desired year, as described above. - Be sure to select the proper deflator. - For TOA, please note that while these deflators are easy to use, they may be somewhat inaccurate with regards to all non-procurement appropriations if not applied correctly due to these appropriations containing funds for either pay or fuel, or both - areas in which historical inflation swings have been particularly pronounced. It should also be recognized that retired pay was not budgeted in the military personnel appropriations before FY 1985. However, for most budget purposes, the deflators shown in this table will be adequate. - For outlays, use the DON outlay deflators. 3.1

FY 2017 Budget Estimates Pay and Inflation Rate Assumptions 2015 2016 2017 2018 2019 2020 2021 Pay /1 Military 1.0 1.3 1.6 1.6 1.6 1.8 2.1 Civilian 1.0 1.3 1.6 1.6 1.6 1.8 2.1 FY15 FY16 FY17 FY18 FY19 FY20 FY21 Purchases /2 Fuel -5.9-7.3-8.2 4.8 3.4 2.6 1.8 Other Purchases 1.1 1.2 1.8 1.8 2.0 2.0 2.0 /1 The above table represents Military and General Schedule civilian employee pay raises effective on January of each year. /2 Reflects FY 2017 President's Budget Estimate assumptions, without regard to FY 2016 execution trends. 3.2

Department of the Navy FY 2017 Budget Estimates Military and Civilian Pay Increases Since 1945 General General Effective Military Schedule Effective Military Schedule Date Pay Salaries Date Salaries Salaries Jul 1, 1945-15.9 Oct 1, 1981 14.3 4.8 Jul 1, 1946 23.7 14.2 Oct 1, 1982 4.0 4.0 Jul 1, 1948-11.0 Oct 1, 1984 4.0 4.0 Oct 1, 1949 21.6 - Jan 1, 1985 4.0 3.5 Oct 28, 1949-4.1 Oct 1, 1985 3.0 - Jul 1, 1951-10.0 Jan 1, 1987 3.0 3.0 May 1, 1952 10.9 - Jan 1, 1988 2.0 2.0 Mar 1, 1955-7.5 Jan 1, 1989 4.1 4.1 Apr 1, 1955 2.8 - Jan 1, 1990 3.6 3.6 Jan 1, 1958-10.0 Jan 1, 1991 4.1 4.1 Jun 1, 1958 6.3 - Jan 1, 1992 4.2 4.2 Jul 1, 1960-7.7 Jan 1, 1993 3.7 3.7 Oct 14, 1962-5.5 Jan 1, 1994 2.2 3.6 Oct 1, 1963 8.4 - Jan 1, 1995 2.6 2.6 Jan 5, 1964-4.1 Jan 1, 1996 2.4 2.4 Jul 1, 1964-4.2 Jan 1, 1997 3.0 3.0 Sep 1, 1964 1.4 - Jan 1, 1998 2.8 2.8 Sep 1, 1965 6.4 - Jan 1, 1999 3.6 3.6 Oct 1, 1965-3.6 Jan 1, 2000 4.8 4.8 Jul 1, 1966 2.8 2.9 Jan 1, 2001 3.7 3.7 Oct 1, 1967 4.5 4.5 Jan 1, 2002 6.9 1/ 4.6 Jul 1, 1968 4.9 4.9 Jan 1, 2003 4.7 2/ 4.1 Jul 1, 1969 9.1 9.1 Jan 1, 2004 4.15 3/ 4.1 Jan 1, 1970 6.0 6.0 Jan 1, 2005 3.5 3.5 Jan 1, 1971 6.0 6.0 Jan 1, 2006 3.1 3.1 Nov 14, 1971 13.1 - Jan 1, 2007 2.2 4/ 2.2 Jan 1, 1972 5.5 5.5 Jan 1, 2008 3.5 3.5 Jan 1, 1973 5.1 5.1 Jan 1, 2009 3.9 3.9 Oct 1, 1973 4.8 4.8 Jan 1, 2010 3.4 2.0 Oct 1, 1974 5.5 5.5 Jan 1, 2011 1.4 - Oct 1, 1975 5.0 5.0 Jan 1, 2012 1.6 - Oct 1, 1976 4.8 4.8 Jan 1, 2013 1.7 - Oct 1, 1977 7.0 7.0 Jan 1, 2014 1.0 1.0 Oct 1, 1978 5.5 5.5 Jan 1, 2015 1.0 1.0 Oct 1, 1979 7.0 7.0 Jan 1, 2016 1.3 1.3 Oct 1, 1980 11.7 9.1 Jan 1, 2017 1.6 1.6 1/ Reflects an average 6.9% across-the-board and targeted pay raise 2/ Reflects an average 4.7% across-the-board and targeted pay raise 3/ Reflects targeted pay raise with an average 4.15% across-the-board impact 4/ Excludes selected targeted increase for certain warrant officers and midgrade/senior enlisted personnel implemented 3.3

Department of the Navy Deflators (Outlays) Base Year is FY 2017 (Deflators = Current/Constant) EXCLUDING PAY, FUEL & MEDICAL OTHER TOTAL CIV MIL RET MEDICAL MIL FH & NON Year PAY PAY PAY ACCRUAL PERS FUEL DHP O&M PROC RDT&E MILCON TOTAL PAY TOTAL 1970 14.23 10.81 14.26 18.76 10.07 17.31 17.01 18.76 18.76 17.51 16.97 14.45 1971 15.46 11.69 15.78 19.61 10.52 18.01 17.77 19.61 19.61 18.32 17.81 15.33 1972 16.74 13.62 16.83 20.36 10.93 18.75 18.58 20.36 20.36 19.13 18.41 16.52 1973 17.76 15.29 17.85 21.21 11.38 19.19 19.24 21.21 21.21 19.79 19.03 17.55 1974 19.33 16.32 19.58 22.46 12.05 21.60 20.48 22.46 22.46 21.40 20.58 18.97 1975 20.90 17.39 22.34 25.84 13.87 26.11 23.04 25.84 25.84 24.70 23.39 21.04 1976 22.60 18.30 24.80 27.78 14.91 27.90 24.70 27.78 27.78 26.51 25.21 22.59 1977 24.58 19.33 26.27 30.06 16.13 30.06 26.70 30.06 30.06 28.62 27.23 24.34 1978 26.55 20.67 28.24 32.19 17.28 32.19 28.68 32.19 32.19 30.68 29.30 26.21 1979 28.12 21.88 30.58 35.12 19.97 35.12 31.23 35.12 35.12 33.21 31.77 28.26 1980 30.04 23.44 34.27 38.84 37.59 38.84 34.79 38.84 38.84 36.90 36.97 31.84 1981 32.67 26.73 38.11 42.96 43.43 42.96 38.68 42.96 42.96 40.96 41.19 35.71 1982 33.53 31.08 40.62 46.23 48.29 46.23 43.57 46.23 46.23 45.00 45.30 39.40 1983 35.35 32.49 42.97 48.08 43.25 48.08 46.96 48.08 48.08 47.54 47.20 41.46 1984 36.79 34.06 44.43 49.90 37.28 49.90 49.90 49.90 49.90 49.90 48.93 43.21 1985 38.04 35.83 51.60 34.58 51.60 51.60 51.60 51.60 51.60 50.41 45.07 1986 38.86 37.37 53.04 29.96 53.04 53.04 53.04 53.04 53.04 51.57 46.47 1987 41.28 38.21 54.48 27.51 54.48 54.48 54.48 54.48 54.48 52.75 47.77 1988 43.90 40.09 56.11 23.06 56.11 56.11 56.11 56.11 56.11 54.09 49.41 1989 46.65 41.54 58.47 23.08 58.47 58.47 58.47 58.47 58.47 56.23 51.48 1990 48.94 43.81 60.86 20.59 60.86 60.86 60.86 60.86 60.86 58.18 52.90 1991 50.89 45.92 63.48 38.54 63.48 63.48 63.48 63.48 63.48 61.48 54.87 1992 53.01 47.53 65.39 25.71 65.39 65.39 65.39 65.39 65.39 63.15 57.08 1993 55.04 49.86 66.96 26.07 37.91 66.96 66.96 66.96 66.96 66.96 62.66 57.95 1994 56.43 51.15 68.29 29.75 38.55 68.29 68.29 68.29 68.29 68.29 63.69 59.18 1995 57.83 52.43 69.59 26.06 40.22 69.59 69.59 69.59 69.59 69.59 64.64 60.20 1996 59.22 53.68 70.98 27.52 41.79 70.98 70.98 70.98 70.98 70.98 65.82 61.40 1997 60.99 55.29 72.26 27.87 42.99 72.26 72.26 72.26 72.26 72.26 67.44 63.16 1998 62.70 56.84 72.77 33.36 44.23 72.77 72.77 72.77 72.77 72.77 68.40 64.71 1999 64.96 58.89 73.35 30.43 45.44 73.35 73.35 73.35 73.35 73.35 68.83 65.91 2000 68.07 61.71 74.38 22.73 47.03 74.38 74.38 74.38 74.38 74.38 69.82 67.87 2001 70.59 64.00 75.79 37.03 48.63 75.79 75.79 75.79 75.79 75.79 71.66 69.92 2002 73.84 68.41 76.40 36.66 51.66 76.40 76.40 76.40 76.40 76.40 72.46 71.90 2003 76.87 71.63 62.70 77.16 30.80 55.02 77.16 77.16 77.16 77.16 77.16 73.22 73.41 2004 80.02 74.60 65.34 78.70 33.36 58.67 78.70 78.70 78.70 78.70 78.70 75.45 75.84 2005 82.82 77.21 68.08 80.91 63.79 62.41 80.90 80.91 80.91 80.91 80.91 78.82 79.03 2006 85.39 79.61 70.87 83.41 78.45 66.28 83.41 83.42 83.42 83.42 83.41 81.68 81.80 2007 87.27 81.76 73.78 85.67 79.55 70.40 85.67 85.67 85.67 85.67 85.67 84.09 84.11 2008 90.32 84.62 76.95 87.72 107.48 74.76 87.72 87.72 87.72 87.72 87.72 86.89 86.94 2009 93.84 87.92 79.26 89.04 73.94 79.00 89.04 89.04 89.04 89.04 89.04 87.77 88.44 2010 95.72 90.91 82.03 89.75 92.65 83.65 89.75 89.75 89.75 89.75 89.75 89.23 90.14 2011 95.72 92.18 84.49 91.55 115.08 86.13 91.54 91.55 91.55 91.55 91.54 91.41 92.00 2012 95.72 93.66 87.54 93.19 118.64 88.78 93.19 93.19 93.19 93.19 93.19 93.28 93.65 2013 95.72 95.25 89.99 94.59 128.61 91.04 94.59 94.59 94.59 94.59 94.59 95.01 95.18 2014 96.39 96.39 92.06 96.01 124.88 92.76 96.01 96.01 96.01 96.01 96.01 96.40 96.45 2015 97.35 97.35 94.45 97.07 117.51 95.01 97.07 97.07 97.07 97.07 97.07 97.31 97.38 2016 98.52 98.52 96.34 98.23 108.93 96.79 98.23 98.23 98.23 98.23 98.23 98.31 98.39 2017 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2018 101.60 101.60 103.70 101.80 104.80 103.27 101.80 101.80 101.80 101.80 101.80 102.17 101.89 2019 103.23 103.23 107.74 103.84 108.41 106.86 103.84 103.84 103.84 103.84 103.84 104.52 103.93 2020 104.98 105.08 111.95 105.91 111.2 110.66 105.91 105.91 105.91 105.91 105.91 106.92 106.08 2021 107.08 107.19 116.31 108.03 113.2 114.53 108.03 108.03 108.03 108.03 108.03 109.91 108.42 3.4

Department of the Navy Deflators (TOA) Base Year is FY 2017 (Deflators = Current/Constant) EXCLUDING PAY, FUEL & MEDICAL OTHER TOTAL CIV MIL RET MEDICAL MIL FH & NON Year PAY PAY PAY ACCRUAL PERS FUEL DHP O&M PROC RDT&E MILCON TOTAL PAY TOTAL 1970 14.23 10.81 14.26 18.87 10.07 17.67 17.80 19.30 19.97 18.16 17.53 14.63 1971 15.46 11.69 15.78 19.70 10.52 18.36 18.87 20.20 21.23 19.13 18.51 15.55 1972 16.74 13.62 16.83 20.48 10.93 19.30 20.19 21.17 22.43 20.26 19.42 16.97 1973 17.76 15.29 17.85 21.43 11.38 21.01 21.95 22.56 24.22 21.90 21.00 18.47 1974 19.33 16.32 19.58 23.08 12.05 24.18 24.16 24.99 26.44 24.36 23.26 20.13 1975 20.90 17.39 22.34 26.19 13.87 27.36 26.89 27.65 29.57 27.25 25.53 21.90 1976 22.60 18.30 24.80 28.51 14.91 30.05 29.74 30.61 32.13 30.00 28.40 24.06 1977 24.58 19.33 26.27 30.42 16.13 31.39 30.76 31.84 33.47 31.20 29.74 25.72 1978 26.55 20.67 28.24 32.73 17.28 34.01 33.72 34.49 35.74 33.94 32.43 27.88 1979 28.12 21.88 30.58 35.80 19.97 37.32 37.16 37.84 38.81 37.33 35.51 30.08 1980 30.04 23.44 34.27 39.59 37.59 41.03 40.91 41.49 42.01 41.01 40.67 33.64 1981 32.67 26.73 38.11 43.50 43.43 44.46 44.37 44.72 45.13 44.43 44.34 37.68 1982 33.53 31.08 40.62 46.46 48.29 46.92 47.18 47.05 47.65 47.09 47.18 40.96 1983 35.35 32.49 42.97 48.29 43.25 48.71 49.41 48.83 49.51 49.11 48.72 42.90 1984 36.79 34.06 44.43 50.08 37.28 50.41 51.09 50.54 51.19 50.80 49.95 44.43 1985 38.04 35.83 51.71 34.58 51.97 52.65 52.10 52.84 52.36 51.31 46.09 1986 38.86 37.37 53.16 29.96 53.44 54.31 53.57 54.49 53.92 52.47 47.16 1987 41.28 38.21 54.64 27.51 55.06 56.16 55.18 56.27 55.63 53.88 48.51 1988 43.90 40.09 56.42 23.06 57.06 58.33 57.18 58.30 57.68 55.57 50.29 1989 46.65 41.54 58.78 23.08 59.41 60.47 59.51 60.41 59.90 57.48 52.09 1990 48.94 43.81 61.20 20.59 61.79 62.48 61.87 62.23 62.10 59.30 53.50 1991 50.89 45.92 63.64 38.54 63.94 64.19 63.97 64.03 64.02 62.44 56.31 1992 53.01 47.53 65.47 25.71 65.59 65.63 65.60 65.55 65.59 63.31 57.13 1993 55.04 49.86 66.98 26.07 37.29 67.01 66.92 66.99 66.89 66.96 61.95 57.45 1994 56.43 51.15 68.31 29.75 38.54 68.31 68.14 68.26 68.08 68.22 62.99 58.55 1995 57.83 52.43 69.62 26.06 40.02 69.59 69.24 69.56 69.30 69.46 64.06 59.80 1996 59.22 53.68 70.96 27.52 41.54 70.82 70.21 70.77 70.35 70.59 65.44 61.23 1997 60.99 55.29 72.07 27.87 42.74 71.70 71.02 71.62 71.13 71.45 66.50 62.60 1998 62.70 56.84 72.61 33.36 44.11 72.30 71.80 72.23 71.90 72.14 67.88 64.46 1999 64.96 58.89 73.29 30.43 45.49 73.13 72.81 73.10 72.86 73.02 68.82 66.03 2000 68.07 61.71 74.38 22.73 47.11 74.27 73.90 74.28 73.92 74.15 69.59 67.77 2001 70.59 64.00 75.62 37.03 49.25 75.36 74.98 75.28 75.09 75.24 71.63 70.04 2002 73.84 68.41 76.27 36.66 52.13 76.15 76.22 76.12 76.30 76.19 72.40 71.89 2003 76.87 71.63 62.70 77.20 30.80 55.82 77.37 77.83 77.41 77.91 77.50 74.11 74.05 2004 80.02 74.60 65.34 78.89 33.36 59.39 79.29 79.83 79.33 79.88 79.42 76.23 76.39 2005 82.82 77.21 68.08 81.14 63.79 63.24 81.59 81.96 81.61 81.94 81.67 79.68 79.65 2006 85.39 79.61 70.87 83.58 78.45 67.10 83.84 83.93 83.85 83.84 83.84 82.23 82.20 2007 87.27 81.76 73.78 85.77 79.55 71.07 85.85 85.62 85.84 85.42 85.75 84.38 84.32 2008 90.32 84.62 76.95 87.65 107.48 75.47 87.42 86.95 87.38 86.75 87.24 86.59 86.70 2009 93.84 87.92 79.26 88.84 73.94 79.52 88.52 88.18 88.46 88.07 88.42 87.32 88.05 2010 95.72 90.91 82.03 89.79 92.65 83.30 89.79 89.58 89.76 89.36 89.70 89.18 90.06 2011 95.72 92.18 84.49 91.54 115.08 85.88 91.44 91.07 91.40 90.82 91.31 91.18 91.81 2012 95.72 93.66 87.54 93.12 118.64 88.27 92.91 92.46 92.88 92.13 92.78 92.86 93.34 2013 95.72 95.25 89.99 94.51 128.61 90.43 94.28 93.76 94.25 93.54 94.13 94.56 94.87 2014 96.39 96.39 92.06 95.85 124.88 92.19 95.52 95.08 95.50 94.86 95.41 95.80 96.01 2015 97.35 97.35 94.45 96.94 117.51 94.50 96.71 96.49 96.69 96.39 96.66 96.90 97.08 2016 98.52 98.52 96.34 98.23 108.93 96.77 98.21 98.14 98.20 98.11 98.18 98.31 98.43 2017 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 2018 101.60 101.60 103.70 101.84 104.80 103.36 101.91 101.96 101.92 101.98 101.92 102.17 101.96 2019 103.23 103.23 107.74 103.88 108.41 106.97 103.95 104.00 103.95 104.02 103.96 104.43 104.00 2020 104.98 105.08 111.95 105.96 111.20 110.76 106.03 106.08 106.03 106.09 106.04 106.73 106.13 2021 107.08 107.19 116.31 108.08 113.20 114.71 108.15 108.20 108.15 108.22 108.16 109.05 108.39 3.5

INTENTIONALLY BLANK

SECTION 4 - CURRENT & CONSTANT DOLLARS This section displays DON annual real program changes graphically for FY 1995 through FY 2017 in terms of TOA, BA, and Outlays. Current and constant dollar (TOA) information for the DON is provided. Constant FY 2017 dollar amounts for the FY 2017 Budget Estimates are displayed by appropriation. TOA real program trends in constant and current dollars are displayed for FY 1998 through FY 2017. Current and constant dollar (TOA) information is displayed by appropriation title. Direct budget plan (TOA) current dollars for FY 1998 through FY 2017 and constant dollars for FY 1998 through FY 2017 is provided by appropriation. Total Navy and Marine Corps funding, and their percentage shares of the budget are provided for current dollars. Total Navy and Marine Corps funding, including DON, Navy, and Marine Corps real program change are provided for constant dollars. 4.1

25.0 DON FY 2017 Budget Estimates Annual Real Program Change 20.0 15.0 10.0 TOA Percent 5.0 0.0 BA OUTLAYS -5.0-10.0-15.0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Fiscal Year NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 4.2

Real Program Change by Appropriation FY 2017 Budget Estimates FY 2017 Constant Dollars (TOA) in Millions FY 2015 FY 2016 FY 2016 FY 2017 FY 2017 Appropriation Constant Constant % RPC Constant % RPC MPN 28,465 28,366-0.3% 27,952-1.5% MPMC 13,399 13,177-1.7% 12,813-2.8% RPN 1,938 1,907-1.6% 1,924 0.9% RPMC 713 716 0.4% 745 4.1% DHAN 1,390 1,330-4.3% 1,241-6.7% DHAMC 807 754-6.6% 703-6.8% DHANR 132 120-9.1% 112-6.7% DHAMCR 78 70-10.3% 65-7.1% Total MilPers 46,922 46,440-1.0% 45,556-1.9% OMN 45,711 46,457 1.6% 39,484-15.0% OMMC 7,663 7,144-6.8% 5,954-16.7% OMNR 1,055 993-5.9% 928-6.5% OMMCR 293 282-3.8% 271-3.9% ERN - 306 N/A 282-7.8% SMOSF 304 - -100.0% - N/A Total O&M 55,027 55,181 0.3% 46,918-15.0% APN 15,549 18,272 17.5% 14,109-22.8% WPN 3,359 3,108-7.5% 3,209 3.2% SCN 16,606 19,067 14.8% 18,355-3.7% OPN 6,637 6,618-0.3% 6,339-4.2% PMC 994 1,267 27.5% 1,363 7.6% PANMC 860 785-8.7% 664-15.4% Total Procurement 44,007 49,117 11.6% 44,039-10.3% RDTE,N 16,586 18,455 11.3% 17,276-6.4% MCN 1,126 1,737 54.3% 1,028-40.8% MCNR 58 37-36.2% 39 5.4% Total Construction 1,184 1,774 49.8% 1,067-39.9% FHCON 17 17 0.0% 94 452.9% FHOPS 356 359 0.8% 301-16.2% Total FHN&MC 373 376 0.8% 395 5.1% BRAC IV 6 - -100.0% - N/A BRAC V 3 - -100.0% - N/A BRAC Consolidated 224 173-22.8% 134-22.5% Total BRAC 233 173-25.8% 134-22.5% NDSF 526 483-8.2% - -100.0% Total Revolving 526 483-8.2% - -100.0% Total DON 164,857 171,998 4.3% 155,385-9.7% NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 4.3

210 DON FY 2017 Budget Estimates TOA Real Program Trends 200 190 180 170 160 Dollars in Billions 150 140 130 120 110 100 90 80 70 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 Fiscal Year Current Constant FY 2017 NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 4.4

FY 2017 Budget Estimates Direct Budget Plan (TOA) History Current Dollars (In Millions of Dollars) Appropriation FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 MPN 16,686 16,655 17,188 18,042 20,281 23,820 24,216 25,294 24,119 24,047 24,729 25,848 27,171 27,425 27,487 26,971 27,356 27,712 27,955 27,952 MPMC 6,026 6,211 6,552 6,893 7,603 9,988 9,956 10,817 10,381 10,801 12,086 13,355 13,751 14,052 14,157 13,740 13,514 13,047 12,989 12,813 RPN 1,392 1,448 1,454 1,580 1,661 1,861 2,003 2,099 1,794 1,856 1,873 1,907 1,944 1,959 1,948 1,913 1,870 1,886 1,880 1,924 RPMC 390 398 414 451 467 514 559 602 527 556 597 648 677 670 658 702 704 695 706 745 DHAN 0 0 0 0 0 0 0 0 2,029 2,098 1,935 1,771 1,826 1,841 1,806 1,397 1,298 1,313 1,281 1,241 DHAMC 0 0 0 0 0 0 0 0 982 1,051 1,116 1,053 1,136 1,142 1,126 876 779 762 726 703 DHANR 0 0 0 0 0 0 0 0 292 287 266 240 234 242 236 169 148 125 116 112 DHAMCR 0 0 0 0 0 0 0 0 137 145 142 134 129 132 135 98 89 74 68 65 OMN * 22,355 23,233 23,433 25,439 28,285 35,555 30,288 33,892 35,445 37,366 39,923 40,504 43,130 46,965 46,980 44,788 46,113 45,068 45,952 39,484 OMMC * 2,466 2,675 2,775 2,922 2,965 5,525 4,969 6,238 7,061 7,605 9,256 9,871 10,327 10,065 9,740 9,167 8,635 7,467 7,038 5,954 OMNR * 919 970 972 1,015 1,013 1,239 1,174 1,364 1,484 1,399 1,299 1,371 1,412 1,441 1,374 1,194 1,210 1,058 988 928 OMMCR * 116 127 142 147 140 218 189 201 322 269 346 328 310 304 307 279 268 284 277 271 ERN 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 300 282 APN 6,588 7,549 8,861 8,037 7,993 8,711 9,075 9,011 10,224 11,922 15,742 14,765 19,791 17,242 18,112 16,653 16,448 14,998 17,930 14,109 WPN 1,054 1,608 1,418 1,422 1,413 2,081 2,054 2,191 2,800 2,897 3,375 3,230 3,378 3,617 3,243 2,819 2,977 3,240 3,050 3,209 SCN 8,007 6,118 7,125 11,965 9,278 9,108 11,373 10,373 11,370 10,152 13,177 13,022 13,843 15,341 15,138 15,080 15,231 15,995 18,705 18,355 OPN 3,008 4,047 4,284 3,450 4,173 4,608 4,905 4,862 5,837 6,132 6,885 5,496 5,927 6,156 6,261 5,549 5,690 6,405 6,496 6,339 PMC 476 857 1,296 1,190 942 1,522 1,542 5,030 5,452 8,052 6,312 4,374 3,793 3,210 2,757 2,042 1,342 959 1,244 1,363 PANMC 376 467 542 543 718 1,421 945 1,024 1,185 1,049 1,640 1,422 1,489 1,444 945 885 719 829 770 664 RDTE,N * 7,888 8,942 9,065 9,596 11,379 13,700 14,773 17,077 18,970 19,724 18,487 19,809 19,948 17,866 17,723 15,553 14,946 16,067 18,147 17,276 MCN * 678 608 991 910 1,139 1,327 1,268 1,328 1,499 1,565 2,577 3,808 3,544 3,301 2,242 1,609 1,634 1,084 1,704 1,028 MCNR 47 32 28 63 53 75 45 37 141 43 64 57 126 61 26 47 29 56 36 39 FHCON 392 287 340 410 273 296 178 12 197 132 307 385 151 197 115 118 86 16 17 94 FHOPS 987 908 880 899 892 865 836 706 676 503 380 384 374 372 375 356 344 345 353 301 NDSF 1,071 680 713 497 789 852 996 1,107 1,301 374 1,345 2,003 1,685 1,237 1,472 683 761 508 474 0 KAHO 35 25 34 74 76 86 20 0 0 0 0 0 0 0 0 0 0 0 0 0 BRAC 980 552 0 427 247 474 110 0 252 690 768 977 826 531 346 245 167 225 170 134 NWCF 23 2 0 146 0 40 130 294 118 116 265 2 204 0 0 24 0 0 0 0 SMOSF 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 179 2,038 294 0 0 DON 81,958 84,398 88,509 96,117 101,778 123,887 121,608 133,560 144,596 150,834 164,893 166,765 177,126 176,814 174,710 163,140 164,397 160,512 169,370 155,385 Navy/Marine Corps Split USN $ 71,655 73,254 76,220 83,447 88,322 104,515 102,777 108,855 117,895 119,870 131,301 132,441 142,220 143,007 143,182 134,264 137,272 135,828 144,511 132,018 % 87.43% 86.80% 86.11% 86.82% 86.78% 84.36% 84.52% 81.50% 81.53% 79.47% 79.63% 79.42% 80.29% 80.88% 81.95% 82.30% 83.50% 84.62% 85.32% 84.96% USMC $ 10,303 11,145 12,290 12,669 13,455 19,372 18,831 24,705 26,702 30,964 33,592 34,324 34,906 33,808 31,529 28,875 27,125 24,684 24,859 23,366 % 12.57% 13.20% 13.89% 13.18% 13.22% 15.64% 15.48% 18.50% 18.47% 20.53% 20.37% 20.58% 19.71% 19.12% 18.05% 17.70% 16.50% 15.38% 14.68% 15.04% * Includes American Recovery and Reinvestment Act of 2009 appropriated amounts in FY 2009. NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 4.5

FY 2017 Budget Estimates Direct Budget Plan (TOA) History Constant FY 2017 Dollars (In Millions of Dollars) Appropriation FY 98 FY 99 FY 00 FY 01 FY 02 FY 03 FY 04 FY 05 FY 06 FY 07 FY 08 FY 09 FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 MPN 27,734 26,864 26,517 26,920 28,662 32,755 32,248 32,602 29,789 28,913 28,838 29,248 29,981 29,785 29,366 28,350 28,392 28,465 28,366 27,952 MPMC 10,182 10,155 10,209 10,382 10,820 13,755 13,298 13,992 12,812 13,027 14,116 15,120 15,157 15,257 15,121 14,439 14,023 13,399 13,177 12,813 RPN 2,307 2,324 2,236 2,352 2,367 2,558 2,679 2,722 2,217 2,230 2,184 2,159 2,145 2,127 2,081 2,011 1,941 1,938 1,907 1,924 RPMC 646 639 636 672 662 720 756 792 652 669 695 734 746 727 702 738 731 713 716 745 DHAN 0 0 0 0 0 0 0 0 2,862 2,844 2,515 2,234 2,226 2,179 2,064 1,553 1,410 1,390 1,330 1,241 DHAMC 0 0 0 0 0 0 0 0 1,385 1,424 1,451 1,328 1,385 1,352 1,286 973 846 807 754 703 DHANR 0 0 0 0 0 0 0 0 412 389 346 303 286 286 270 188 161 132 120 112 DHAMCR 0 0 0 0 0 0 0 0 193 196 185 169 157 156 154 109 97 78 70 65 OMN * 34,476 35,690 35,180 36,388 39,659 48,966 40,543 41,992 42,344 43,555 44,666 45,532 47,071 49,819 48,977 46,270 47,270 45,711 46,457 39,484 OMMC * 3,629 3,864 3,896 4,001 3,974 7,192 6,286 7,646 8,412 8,832 10,504 11,073 11,351 10,865 10,351 9,633 8,971 7,663 7,144 5,954 OMNR * 1,494 1,571 1,611 1,491 1,538 1,884 1,718 1,713 1,787 1,647 1,443 1,587 1,559 1,516 1,399 1,184 1,203 1,055 993 928 OMMCR * 166 178 194 197 187 285 241 247 385 314 394 370 343 331 329 295 279 293 282 271 ERN 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 306 282 APN 9,175 10,362 11,990 10,726 10,496 11,193 11,361 10,988 12,173 13,924 18,117 16,749 22,093 18,933 19,590 17,765 17,312 15,549 18,272 14,109 WPN 1,468 2,209 1,920 1,898 1,854 2,671 2,570 2,671 3,335 3,386 3,884 3,664 3,772 3,973 3,509 3,009 3,134 3,359 3,108 3,209 SCN 11,211 8,440 9,665 15,952 12,127 11,635 14,184 12,642 13,578 11,911 15,226 14,831 15,521 16,935 16,466 16,161 16,077 16,606 19,067 18,355 OPN 4,182 5,551 5,787 4,598 5,481 5,930 6,152 5,935 6,953 7,154 7,908 6,230 6,611 6,751 6,763 5,910 5,980 6,637 6,618 6,339 PMC 662 1,177 1,753 1,589 1,239 1,958 1,930 6,130 6,486 9,395 7,257 4,960 4,230 3,521 2,979 2,177 1,413 994 1,267 1,363 PANMC 525 643 734 725 942 1,821 1,180 1,246 1,411 1,227 1,890 1,615 1,664 1,587 1,024 946 758 860 785 664 RDTE,N * 11,065 12,448 12,349 12,858 15,012 17,712 18,615 20,904 22,581 22,941 20,990 22,176 21,933 19,310 18,893 16,435 15,614 16,586 18,455 17,276 MCN * 984 867 1,366 1,230 1,500 1,701 1,581 1,613 1,781 1,828 2,966 4,310 3,968 3,639 2,435 1,724 1,726 1,126 1,737 1,028 MCNR 66 43 38 85 69 96 57 45 168 50 74 65 141 68 29 50 31 58 37 39 FHCON 549 396 462 547 357 378 221 15 235 155 355 438 170 217 125 126 91 17 17 94 FHOPS 1,379 1,254 1,201 1,205 1,186 1,140 1,073 865 805 585 433 431 413 405 402 376 360 356 359 301 NDSF 1,487 933 964 661 1,034 1,096 1,252 1,356 1,554 438 1,544 2,267 1,881 1,358 1,590 727 799 526 483 0 KAHO 48 34 46 97 99 112 26 1 0 0 0 0 0 0 0 0 0 0 0 0 BRAC 1,360 756 0 567 324 612 138 0 300 807 883 1,107 922 583 374 261 176 233 173 134 NWCF 32 3 0 192 0 52 165 363 142 136 302 2 221 0 0 26 0 0 0 0 SMOSF 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 190 2,134 304 0 0 DON Total 124,827 126,401 128,755 135,335 139,589 166,222 158,276 166,481 174,751 177,976 189,166 188,702 195,945 191,680 186,277 171,625 170,926 164,857 171,998 155,385 DON Real Change 1.26% 1.86% 5.11% 3.14% 19.08% -4.78% 5.18% 4.97% 1.85% 6.29% -0.24% 3.84% -2.18% -2.82% -7.87% -0.41% -3.55% 4.33% -9.66% Navy/Marine Corps Split USN $ 108,373 109,169 110,553 117,063 120,943 140,242 133,734 135,454 142,237 141,223 150,278 149,795 157,247 154,830 152,500 141,166 142,683 139,464 146,743 132,018 Real Change 0.73% 1.27% 5.89% 3.31% 15.96% -4.64% 1.29% 5.01% -0.71% 6.41% -0.32% 4.97% -1.54% -1.50% -7.43% 1.07% -2.26% 5.22% -10.03% USMC $ 16,454 17,232 18,201 18,272 18,646 25,980 24,542 31,026 32,514 36,753 38,888 38,907 38,698 36,850 33,777 30,459 28,244 25,393 25,255 23,366 Real Change 4.73% 5.62% 0.39% 2.05% 39.33% -5.54% 26.42% 4.80% 13.04% 5.81% 0.05% -0.54% -4.77% -8.34% -9.82% -7.27% -10.09% -0.54% -7.48% * Includes American Recovery and Reinvestment Act of 2009 appropriated amounts in FY 2009. NOTE: FY16 and prior includes supplemental funding; FY17 reflects the baseline request. 4.6

SECTION 5 - OBLIGATION & OUTLAY DATA This section summarizes obligation and outlay information. Obligation information reflects the following: - Obligation rates used in support of the FY 2017 Budget Estimates. These rates are used for estimating or forecasting obligation amounts by appropriation and fiscal year program for FY 2016 through FY 2021. - Obligations, unobligated balances and new obligational resources for FY 2015 through FY 2017. - Historical and estimated direct obligation balances by object class for FY 2000 through FY 2017. Outlay information reflects the following: - Expenditure rates used in support of the FY 2017 Budget Estimates. These rates are used for estimation or forecasting expenditure amounts by appropriation and fiscal year program for FY 2016 through FY 2021. - Outlays, unexpended balances, and new expendable resources for FY 2015 through FY 2017. 5.1

Department of the Navy FY 2017 Budget Estimates Program Obligation Rates (As a percent of Budget Authority) Program Appropriation Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Military Personnel, Navy 2016 100.00% 2017 100.00% Military Personnel, Marine Corps 2016 100.00% 2017 100.00% Reserve Personnel, Navy 2016 100.00% 2017 100.00% Reserve Personnel, Marine Corps 2016 100.00% 2017 100.00% Operation & Maintenance, Navy 2016 100.00% 2017 100.00% Operation & Maintenance, Marine Corps 2016 100.00% 2017 100.00% Operation & Maintenance, Navy Reserve 2016 100.00% 2017 100.00% Operation & Maintenance, MC Reserve 2016 100.00% 2017 100.00% Environmental Restoration Fund, Navy 2016 100.00% 2017 100.00% Page 1 of 2 5.2

Department of the Navy FY 2017 Budget Estimates Program Obligation Rates (As a percent of Budget Authority) Program Appropriation Year FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Aircraft Procurement, Navy 2016 70.33% 19.87% 9.89% 2017 70.00% 20.00% 10.00% Weapons Procurement, Navy 2016 80.00% 10.00% 10.00% 2017 80.00% 10.00% 10.00% Shipbuilding & Conversion, Navy 2016 65.73% 19.58% 4.90% 4.90% 4.89% 2017 65.00% 20.00% 5.00% 5.00% 5.00% Procurement of Ammunition, Navy and Marine Corps 2016 80.00% 10.00% 10.00% 2017 80.00% 10.00% 10.00% Other Procurement, Navy 2016 80.00% 10.00% 10.00% 2017 80.00% 10.00% 10.00% Procurement, Marine Corps 2016 55.64% 33.11% 11.25% 2017 55.64% 33.11% 11.25% Research Development, Test & Evaluation, Navy 2016 90.00% 10.00% 2017 90.00% 10.00% Military Construction, Navy 2016 60.00% 20.00% 10.00% 9.00% 1.00% 2017 60.00% 20.00% 10.00% 9.00% 1.00% Military Construction, Naval Reserve 2016 75.00% 15.00% 5.00% 3.00% 2.00% 2017 75.00% 15.00% 5.00% 3.00% 2.00% Family Housing, Construction 2016 65.00% 25.00% 5.00% 3.30% 1.70% Navy & Marine Corps 2017 65.00% 25.00% 5.00% 3.30% 1.70% Family Housing, Operations & Maintenance 2016 100.00% Navy & Marine Corps 2017 100.00% Page 2 of 2 5.2

Department of the Navy FY 2017 Budget Estimates Unobligated Balances, New Obligational Resources, and Obligations - FY 2015 - Actual (in Thousands of Dollars) ------------ New Resources ------------- ------------- Obligations ------------ Unobligated Total Balance Recoveries Reim- Available Reim- Brought Budget of Prior bursable for Direct bursable Concept Total Forward Authority Transfers Obligations Orders Obligation Obligations Obligations Obligations Obligations MILITARY PERSONNEL MPN 15 312 27,797,469 0 0 368,486 28,166,267 27,711,816 366,481 0 28,078,297 MPMC 15 212 13,157,352 416 0 28,346 13,186,326 13,047,388 28,203 0 13,075,591 RPN 15 0 1,889,214 0 0 35,700 1,924,914 1,886,227 33,359 0 1,919,586 RPMC 15 0 699,992 0 0 2,981 702,973 694,620 2,981 0 697,601 DHAN 15 0 1,312,671 0 0 0 1,312,671 1,312,671 0 0 1,312,671 DHAMC 15 0 762,093 0 0 0 762,093 762,093 0 0 762,093 DHANR 15 0 124,898 0 0 0 124,898 124,898 0 0 124,898 DHAMCR 15 0 73,966 0 0 0 73,966 73,966 0 0 73,966 Total, MILITARY PERSONNEL 524 45,817,655 416 0 435,513 46,254,108 45,613,679 431,024 0 46,044,703 OPERATION AND MAINTENANCE OMN 15 42 45,106,698 101,781 0 5,311,964 50,520,485 45,068,219 4,065,889 0 49,134,108 OMMC 15 121 7,492,960 22 0 308,463 7,801,566 7,467,360 287,763 0 7,755,123 OMNR 15 0 1,061,748 0 0 4,726 1,066,474 1,057,647 4,175 0 1,061,822 OMMCR 15 0 284,847 0 0 1,854 286,701 284,287 1,855 0 286,142 ERN 13,582 0-13,582 0 63 63 0 0 0 0 KAHO IS CONV 10 0 0 0 0 10 0 0 0 0 KAHO 40 0 0 0 0 40 0 0 0 0 sub-total 13,795 53,946,253 88,221 0 5,627,070 59,675,339 53,877,513 4,359,682 0 58,237,195 SMOSF 14 2,038,200 0-249,200 0 0 1,789,000 0 0 0 0 SMOSF 15 0 294,400 0 0 0 294,400 0 0 0 0 sub-total 2,038,200 294,400-249,200 0 0 2,083,400 0 0 0 0 Total, OPERATION & MAINTENANCE 2,051,995 54,240,653-160,979 0 5,627,070 61,758,739 53,877,513 4,359,682 0 58,237,195 PROCUREMENT APN 13 1,482,345-47,200 0 266,433-125 1,701,453 1,640,776 361 0 1,641,137 APN 14 5,039,876-196,622-25,900 357,685 0 5,175,039 3,582,328 0 0 3,582,328 APN 15 0 14,997,923 0 0 0 14,997,923 9,482,762 0 0 9,482,762 sub-total 6,522,221 14,754,101-25,900 624,118-125 21,874,415 14,705,866 361 0 14,706,227 WPN 13 85,299 0-6,048 73,888 8,910 162,049 135,558 4,847 0 140,405 WPN 14 553,359-63,400-1,043 30,534 2,311 521,761 402,202 3,741 0 405,943 WPN 15 391 3,201,200 38,409 582 2,954 3,243,536 2,680,461 0 0 2,680,461 sub-total 639,049 3,137,800 31,318 105,004 14,175 3,927,346 3,218,221 8,588 0 3,226,809 SCN 07 17,878 0-389 29,199 0 46,688 26,918 0 0 26,918 SCN 08 121,648 0-469 26,248 0 147,427 108,697 0 0 108,697 SCN 09 119,165 0-16,964 43,506 0 145,707 67,326 0 0 67,326 SCN 10 0 0 581,136 35,406 0 616,542 140,798 0 0 140,798 SCN 11 1,236,359 0-5,028 102,229 0 1,333,560 373,942 0 0 373,942 SCN 12 2,081,101 0-25,150 69,024 0 2,124,975 464,578 0 0 464,578 SCN 13 2,734,356 0 6,184 1,107,486 0 3,848,026 1,741,525 0 0 1,741,525 SCN 14 3,535,924 0 30,599 157,974 0 3,724,497 1,808,911 0 0 1,808,911 SCN 15 40 15,963,696 32,000 0 0 15,995,736 11,516,550 0 0 11,516,550 sub-total 9,846,471 15,963,696 601,919 1,571,072 0 27,983,158 16,249,245 0 0 16,249,245 Page 1 of 3 5.3